Inventory Management: We Can Do Better

Supply Chain Shaman

Downsizing inventories over the past decade crippled the response.” In Table 1, I share research collected for the Supply Chains to Admire analysis on the average days of inventory by industry across the period of 2004 to 2019 by increments to match economic shifts. Days of Inventory Peer Group Across Time Periods. So when we start with the facts, it is clear that every industry peer group increased the days of inventory.

Inventory Replenishment Underway

Logistics Trends and Insights

Census Bureau inventory data, for June, indicates the need for inventory replenishment as the seasonal-adjusted sales to inventory ratio declined to 1.37 Total business inventories declined 2.3% for June/May while inventories declined 5.8% Inventory Replenishment.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. In business there are many drivers of inventory, and the management of inventory levels requires discipline and a cross-functional focus. What Drives Inventory Effectiveness?

Five Suggestions for Practical Inventory Management

Logility

The real problem, however, was inventory. The client had a warehouse full of old stock that had been sitting unwanted for years , and there wasn’t enough room to accommodate the inventory that they were selling. . Just get rid of the old s tock and create plenty of room for the inventory that sells , thereby eliminating the need to move to a larger, more expensive facility. What is the right inventory level for your business? .

Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

Four Things You Probably Didn’t Know About Inventory Planning and Sustainability

ToolsGroup

I think it’s time we started spreading the good news: when you harness demand and inventory planning to slash unnecessary expenses and improve service to customers, you also reduce waste and support sustainability. Smart inventory planning cranks up manufacturing efficiency.

Design, Operating and Situational Inventory Trade-Offs

ToolsGroup

Gartner analyst Paul Lord has developed a framework to better understand inventory trade-offs by categorizing those decisions according to the objectives they are meant to achieve: structural, operational and situational. Many companies struggle with decisions such as “How many days of sales or inventory turns per year should we target? or “How can we reduce inventory and improve our balance sheet?”. Structural inventory is a direct result of design choices.

Inventory Obsolescence: It Can Get Complicated

ToolsGroup

The knack in today’s innovation economy is to understand how the value of a particular SKU deteriorates or its costs increase so that profit erosion can be factored into inventory optimization calculations. According to Nucleus Research, in its July 2015 Research Note , companies can optimize inventory using the right algorithms. But correctly modeling inventory obsolescence is important. Supply Chain Planning Inventory OptimizationIt’s hard to get around obsolescence.

Practicing Social Distancing while Keeping Inventory Moving during COVID-19 pandemic

PINC

While social distancing rules, shutdowns, and high demand for certain product groups are top-of-mind right now, employee and driver safety should also be factored into an organization’s overall pandemic response. live/drop, type of inventory, type of equipment, load status, etc.).

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Spinnaker Management Group asked me to co-present on a demand-driven webinar with SanDisk. Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. As I sat with the team, and discussed the future of supply chain, they impressed me with their by their use of planning tools and their process diligence on building inventory strategies to enable a customer-segmented supply chain.

Five Types of Inventory Optimization You Should Know

ToolsGroup

Inventory configuration is usually the predominant issue in most manufacturing environments. Inventory policy is usually the predominant issue in most distribution environments. Here are five types of inventory optimization that you should be aware of if you are considering an optimization solution. Inventory Configuration addresses the issue of in what form should I hold my inventory; as raw material, finished goods, or something in between?

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions.

How You Can Optimise Your Inventory to Save Money

Unleashed

The phrase ‘flushing money down the drain’ can feel like a reality if your inventory isn’t managed properly. Managing inventory can be daunting, but the feeling of losing money because of inventory can be even worse. It’s time to pay attention to what’s going on in your warehouse and make your inventory save money for you. Let’s see what inventory management techniques can help put a few more dollars back into your accounts.

Are you getting the most out of your inventory management process?

Kinaxis

by Andrew Dunbar Inventory is often the single largest asset on a company’s balance sheet and your inventory management process can have a huge impact on your organization’s bottom line. Understandably, the inventory management process is getting a lot of attention by organizations looking to squeeze out some extra profit in a challenging marketplace. When you think about the priorities of your inventory management process, what’s the first thing that comes to mind?

The Benefits of Evolved Vendor Managed Inventory Model Led by Web-Based VMI

Cerasis

So why do we feature content related to Vendor Managed Inventory? In a VMI model, part of the equation is the inbound & outbound flow of the inventory. Inventory is then put on pallets and shipped as freight. Distributors will inbound to a manufacturer the inventory needed and transportation management, especially inbound freight management, efficiency is paramount to an effective vendor managed inventory model. We never ran out of or had too much inventory.

Vendor Managed Inventory Model for Supply Chain Cost Reductions

Cerasis

Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels. The distributor maintains the inventory plan. Now the group analyzes each idea.

Is your inventory manager a firefighter or an air traffic controller?

Kinaxis

by Andrew Dunbar This is the second blog in my series on Inventory Management. You can find the first one ‘ Are you getting the most out of your inventory management process? Managing inventory can be a challenging job! Inventory managers have to balance multiple conflicting priorities, support multiple internal and external customers, and are typically responsible for millions of dollars spread across multiple sites. Who manages inventory at your company?

Case Musti Group: Thriving in a Complex, Multinational, Supply Chain Environment

RELEX Solutions

Case Musti Group: Thriving in a Complex, Multinational, Supply Chain Environment. Musti Group at a Glance. Company name Musti Group Nordic Oy. – Matti Salmi, Purchasing Director, Musti Group Nordic. Store Service Manager, Musti Group Nordic.

DC 36

Group Purchasing Organizations: More Than a Healthcare Opportunity

AFFLINK

Historically, group purchasing organizations (GPOs) have been primarily utilized within the healthcare industry. A GPO is a group of businesses or organizations that come together to use their collective purchasing power to receive discounts from vendors. Just-in-time inventory management has been proven to be the most cost effective procurement strategy. In fact, according to the Healthcare Supply Chain Association , 96-98% of hospitals in the U.S.

Speed up your eCommerce Business with Inventory Management Software

Vinculum

Inventory management plays a vital role in building a sustainable, scalable and profitable eCommerce business. No matter how expert you are, how bigger or smaller your business may be, what products you sell, or who do you serve, lack in your inventory management can bring bigger challenges in your business success. Thus, inventory Management Software is really an essential tool for your business to gear itself up. What is Inventory Management System?

Port Logistics Group acquires e-commerce tech firm Whiplash

EFT

Port Logistics Group , an omnichannel logistics services provider, has acquired Whiplash Merchandising, Inc. The move comes just over a year after Port Logistics Group took an ownership interest in Whiplash: since February 2018, Port Logistics Group has fulfilled more than 1.5 This brings Port Logistics Group’s warehouse space up to 6.3 Port Logistics Group is investing in the technology and software to further drive innovation.

Broman Group Chooses RELEX to Automate its Replenishment Processes

RELEX Solutions

Broman Group , a Finnish automotive spare parts and accessories company, has chosen RELEX to improve its supply chain processes. By using RELEX’s automated replenishment tools, the company will be able to release more time and resources to business development and reduce capital tied up in inventory. Broman Group chose RELEX to reduce the amount of manual work around ordering. One of our main goals is to improve inventory turnover and reduce overall inventory value.

HCL Tech signs global alliance agreement with JDA Software Group

Supply Chain Network

From IIFL: “HCL Technologies, a leading global IT services provider, announced today that it has signed a global alliance agreement with the JDA Software Group, Inc, leader in supply chain management. The alliance addresses the unique supply chain challenges for business in the areas like planning, procurement, production, distribution, warehousing, inventory, transportation and customer services.

S&OP: An Interview with Nari Viswanathan, Aberdeen Group

Logility

In case you missed it, I recently spoke with Aberdeen Group’s Nari Viswanathan about the change in S&OP strategy. The strategic shift is not only in response to the economic upheaval of the last 24+ months but also a strategic change in philosophy where companies are using information in place of inventory. With better and timelier information, you can more tightly manage your inventory.

Groups 100

5 Inventory Reduction Strategies to Drive Cost Savings

EazyStock

So it makes sense to look for ways to reduce inventory and keep levels under control! What are the potential cost savings from inventory reduction? However, simply cutting inventory across your entire product range is not the approach to take. Eliminating obsolete inventory.

ABC Analysis of Inventory: Optimize Business Bottom Line

OptiProERP

The most common concern supply chain management experts struggle with is accurately identifying the causes of inventory inconsistencies. If a discrepancy is identified when users pick an item or perform a count, an inventory correction needs to be performed. Every inventory issue has a specific method that can be adopted to resolve it. Perform a recount of the inventory in question, preferably by someone who was not involved in the initial count. Inventory Management

Inventory Management Techniques That You Need to Know About

EMERGE App

Not Another List of Inventory Management Techniques. I want to start by saying that this is not an exhaustive list of all the possible inventory management techniques available for all industries. Rather, it’s a carefully curated list of inventory management techniques that work for our wholesale and distribution customers around the world. What we will cover are practical inventory management techniques that: Our customers use; and.

What’s new in the automotive supply chain? (Hint: Inventory Replenishment Policies)

The Network Effect

Today I want to explore how automobile suppliers are improving their operations via inventory replenishment policies. Effective inventory replenishment policies in use today include the 830/862 converted to a delivery release, KanBan, Min/Max, and Sequencing. Improved technologies now provide the ability to optimize truckloads simultaneously with inventory using pull policies. Typical measurements include inventory turns, truck utilization, and premium freight reduction.

Inventory Optimization: How to Handle Slow Movers

Supply Chain Nation

You may be wondering why the number of raspberry gourmet coffee boxes Kroger has in their inventory at their store in rural Georgia even matters, but it does and here’s why: Inventory management is a critical part of every company’s supply chain and is a large part of the operating costs in all industries. Handling inventory of fast movers, items that are sold quickly and in large amounts, is very well understood. This is why we support groups service levels.

Winning the Inventory Battle in the Consumer Products Industry

Logility

From a supply chain standpoint the battle for new product profitability relies largely on two key capabilities, developing accurate new product forecasts and optimizing new product inventory. reduction in finished goods inventory (days). reduction in inventory obsolescence (percent of inventory value). Capability 2: Optimize New Product Inventory. MEIO will determine how much inventory to position and where. eBook: The Inventory Optimization Handbook.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. What is inventory revaluation? Inventory revaluation is the adjustment of the costs of inventory to reflect changes in the recorded cost. Your inventory becomes obsolete.

Supply Chain Agenda of Alessandro de Luca, SVP at Merck Group

Supply Chain Movement

Alessandro de Luca, Senior Vice President, Head of Global Supply Network Operations at Merck Group. I am responsible for the end-to-end global supply chain for Merck Serono, the group’s pharmaceutical division. Forecasting the launch of a new product is always the most difficult part – either you fall too short on production or you end up with too much inventory! ‘Real-time communication in order to be able to react fast is key’.

Retail Inventory Shrinkage Remains a Problem

Enterra Insights

For the last few years, inventory shrinkage has annually cost U.S. ” Regardless of how inventory is lost, shrinkage costs retailers a lot of money. To reduce shrinkage, retailers need to have a strategy to address each of the ways inventory can be lost. Inventory shrinkage strategies. Addressing inventory shrinkage begins with inventory management. Trujillo explains, “Take the plunge and invest in an inventory management system.

Inventory Reduction: The Path to Supply Chain Management

LeanCor

Inventory Reduction: The Path to Supply Chain Management. Inventory is not only a critical part of supply chain management; too often it is the main cause of a painfully incremental progression toward effective and genuine supply chain management. Reading this article will enable you to see inventory from a perspective contrary to most conventional views defining inventory as an asset. Why can inventory reduction lead to organizational success?

PCI Case Study: Hybrent’s Solution Revolutionizes Reporting & Streamlines Operations for One of the Largest Multi-Specialty Physician Groups in Iowa

Hybrent

Physicians’ Clinic of Iowa (PCI) is one of the largest private, multispecialty physician groups in Iowa, with locations in Cedar Rapids and Waterloo. He found that the lack of information and visibility also frustrated the PCI employees who were responsible for placing orders, interacting with vendors, and managing inventories for the various departments within PCI. This has given PCI users the confidence to reduce inventories closer to real time fulfillment. SITUATION.